LONDON and NEW
YORK, July
19, 2019 /PRNewswire/ -- TriOptima, a leading
infrastructure service that lowers costs and mitigates risk in OTC
derivatives markets, today announced that it has completed the
first cleared inflation swap compression run at LCH SwapClear.
The compression run was completed on June
19 with Euro cleared inflation swaps being
compressed through the triReduce service. TriOptima will go
live with Sterling and US Dollar cleared inflation swaps
compression in LCH SwapClear imminently.
In order to manage capital pressures, clients for the first time
can 'co-mingle' cleared inflation swaps with vanilla swaps by
leveraging the new triReduce low touch compression service.
Launched in late 2018, low touch compression was quickly adopted by
several of the largest banks as the next evolution in the
compression process, delivering improved usability, user
transparency and full automation together with API technology. The
new service minimizes the number of clicks required to run a
compression cycle and provides enhanced data validation checks to
streamline the user experience. As a result, clients can complete
compression runs on a daily basis and benefit from a reduction in
capital, risk and operational costs.
"Increasing balance sheet pressures and growing resource
constraints have seen banks increasingly turn to compression as an
effective means of mitigating costs and risks. As a result, it's
important that compression services evolve to meet the needs of
clients today," said Michael Modlock, Global Head of Sales and
Relationship Management, triReduce. "We're pleased to compress
cleared inflation swaps for the first time, delivering this via our
new low touch compression approach which not only minimizes the
time spent by clients, but also provides superior data checks so
they can compress in confidence."
"With clearing of inflation swaps up over 55% year-to-date
compared to the same period in 2018 across 200 users, we're seeing
strong demand continue for compression services," said Cameron Goh, Global Head of Product, Rates, LCH.
"Compression is a crucial tool in driving efficiency for the
cleared market. The ability to compress inflation swaps is of
particular significance for members and clients who are looking to
boost operational and capital efficiency."
TriOptima is a part of CME Group. For more information on
TriOptima offerings, visit: https://www.trioptima.com/
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) enables clients to trade futures,
options, cash and OTC markets, optimize portfolios, and analyze
data – empowering market participants worldwide to efficiently
manage risk and capture opportunities. CME Group exchanges offer
the widest range of global benchmark products across all major
asset classes based on interest rates, equity indexes, foreign
exchange, energy, agricultural products and metals. The
company offers futures and options on futures trading through the
CME Globex® platform, fixed income trading via BrokerTec and
foreign exchange trading on the EBS platform. In addition, it
operates one of the world's leading central counterparty clearing
providers, CME Clearing. With a range of pre- and post-trade
products and services underpinning the entire lifecycle of a trade,
CME Group also offers optimization and reconciliation services
through TriOptima, and trade processing services through
Traiana.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT and Chicago Board
of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are
trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB,
and Traiana, Inc., respectively. Dow Jones, Dow Jones
Industrial Average, S&P 500 and S&P are service and/or
trademarks of Dow Jones Trademark Holdings LLC, Standard &
Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as
the case may be, and have been licensed for use by Chicago
Mercantile Exchange Inc. All other trademarks are the
property of their respective owners. TriOptima AB is regulated
by the Swedish Financial Supervisory Authority for the reception
and transmission of orders in relation to one or more financial
instruments. TriOptima AB is registered with the US National
Futures Association as an introducing broker.
CME-G